METEX plans expansion of specialty amino acid capacity with new industrial transformation plan

Like many in the animal nutrition industry, French biochemistry firm METabolic EXplorer (METEX) had a rough 2022. A manufacturer of animal nutrition products including fermented amino acids and butyric acid (as well as products for other industries), METEX made the decision to halt production in Q3 of last year when energy prices in Europe reached eye-watering levels. Then in the final days of December, the company revealed that it would progressively restart production of fermented amino acids, and also unveiled financing for an industrial transformation plan at its plant in Amiens, a project in which it intends to invest tens of millions of Euros.

Today, we are joined by METEX’s Business and Innovation Director for Animal Nutrition Etienne Corrent and Sustainability and Public Affairs Director Nicolas Martin to discuss that industrial transformation plan in greater detail, as well as get an idea of how the company is in better shape to adapt to a changing market going forward.

The Industrial Transformation Plan

For METEX, the concentration of issues in 2022 had the effect of delaying projects that had been on the company’s agenda since it purchased the amino acids manufacturing business of Ajinomoto Animal Nutrition Europe (AANE) in 2021. “Initially METEX secured the financing for the plan in spring 2022. But due to the tough economic situation in 2022, it was no longer possible to start the investments, because the conditions were not met to release the money from the banks, and to start. During the second half of 2022, when the situation was a bit difficult, a new financing plan was discussed,” Martin explains. “Now we will be finally able to implement this transformation plan that should have taken place in 2022.”

Concretely, he says the company is looking at investments of over €70 million, largely dedicated to the industrial transformation of the production plant.

One important focus for that is the increase in specialty amino acids capacity. METEX had previously announced its intention for products such as tryptophan, valine, isoleucine, leucine, and arginine to make up 60% of its revenues by 2025, complemented by 40% from commodity products; this would be an inversion of the current ratio.

As Martin explains, the company’s plan is to build a new workshop, adding capacity at Amiens. In other words, it is not simply a question of switching over a production line currently making a commodity product like lysine. Specifically, the company is planning to increase downstream processing capacity. Whereas the fermentation stage of production can be done using the same equipment regardless of the final product (for example, the same